Whether you own one property or a dozen, you might be looking for your next real estate investment. When you make an informed decision to put your resources into a “hot” property market, you can enjoy stable rental income, an appreciation of value over time, and also take advantage of the tax breaks available.
However, investing in real estate takes more than picking out a property and making your down payment. You will need some professional advice to guide you on your investment path.
If you’re looking for your next place to invest, consider property in Ottawa. This article describes what Ottawa has to offer and investment tips to help guide you while you look for your next rental property.
As a potential property owner and landlord in Ottawa, you want to know you’re investing in a good market that will offer solid returns on your investment. As the capital of the country, Ottawa has a low unemployment rate.
Compared to other similar markets, Ottawa is ranked well when it comes to general safety. This is one of the reasons this area is the ideal place to purchase property for a long-term investment.
Ottawa is a beautiful city, with plenty of green spaces and impressive architecture. If you get tired of the urban center of the city, you can always visit one of the many green spaces in and around Ottawa.
There are miles and miles of hiking trails for you to explore. We recommend Gatineau Park and Omega Park which are two of the local favorites. For water sports, kayaking, canoeing, and rafting, head over to the Rideau River or Ottawa River.
The quality of education in Ottawa is another major attraction that draws in thousands of students from all over the country and abroad.
Tips for Investing in Ottawa Rental Properties
Consider the Location
Location can play a big role in the success of your investment property. Compared to other investment assets such as stocks and bonds, property is a fixed and immovable asset. Therefore, the value and demand for the property will be affected by its amenities and neighbourhood.
To appreciate the importance of location, consider it from a tenant’s point of view. They would be looking for options that aren’t too loud or busy and close to establishments and green spaces. Easy access to transportation is also something to look into.
Pick the Right Type of Property
Depending on your investment goals, different types of properties will be ideal for you. Another factor that will determine the right property for you would be your budget.
There are some property types that you should only consider purchasing when you have the necessary experience and expertise.
House-flipping is a unique niche, especially when you are dealing with auctioned properties that might require a bit of some repair and renovations. Similarly, large multi-family buildings are more expensive and difficult to manage on your own.
Create a Budget
You have to make sure you’ve done all the necessary calculations before you purchase the property. Consider multiple scenarios that could affect your potential return on investment.
It’s definitely worth considering more conservative growth scenarios. If you base your investment plan on overly positive calculations, you may find that the monthly income fails to provide what you need to cover the costs of management and upkeep.
Create a budget for both the purchase of the property and the monthly expenses you’ll incur while you work to find tenants and after the property is rented out. Make sure you consider potential property emergencies and bigger maintenance issues that could arise during inspections.
Think About Hiring a Property Manager
Your first priority will be to find and purchase a property. But once you have the space, you need to consider how you’re going to manage it. While potential tenants will be attracted by the condition of the property, its location, and the amenities it offers, there’s a lot to be done before you can rent it out.
New landlords will try their hand at self-managing their property. This means you have to be in charge of all of the day-to-day responsibilities that come with owning a rental property. But if you don’t have the experience, expertise, or resources, you will find yourself struggling to meet the demands of the property and your tenants.
For your Ottawa investment property, consider hiring the #1 property manager in the city, Rent In Ottawa. We are a full-service property management company that offers a wide range of services. With us as your manager, you can be assured that all your property needs will be met.
With its low unemployment rate, high renter demand, and wide range of indoor and outdoor activities, Ottawa is an ideal place to invest in real estate. We hope the tips offered above can help you make the right steps toward making your next big investment.
Do you have more questions about investing in Ottawa real estate? The team from Rent In Ottawa is here to answer all of them! We have years of experience guiding investors and managing rental properties. Get in touch with us today. Our property experts are looking forward to hearing from you.